started · updated
German Court rules policyholders bear workshop risk in casco insurance
The German Federal Court of Justice (BGH) has ruled that the 'workshop risk' in motor vehicle casco insurance generally remains with the policyholder. This decision (Az. IV ZR 235/25) clarifies that insurance companies are not obligated to cover repair costs that are deemed objectively unnecessary, unperformed, or excessive.
Under the terms of casco insurance, the insurer is only responsible for the costs required for a repair as defined by the specific contract. This differs from third-party liability cases, where the perpetrator or their insurer typically bears the risk of inflated workshop invoices.
The Automobilclub von Deutschland (AvD) advises drivers to mitigate this financial risk by obtaining a cost estimate and submitting it to their insurance provider for approval before authorizing any repair work. This precaution applies even in partial casco cases, such as damage from storms, vandalism, or animal collisions, where the policyholder's own insurance is used.
Entities
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 4 SOURCES] The Federal Court of Justice (BGH) ruled that the workshop risk in motor vehicle casco insurance generally lies with the policyholder (Az. IV ZR 235/25). www.fehmarn24.de · www.kurierverlag.de · www.europeonline-magazine.eu · www.upday.com
- [● 4 SOURCES] The Automobilclub von Deutschland (AvD) advises drivers to obtain a cost estimate and submit it to their insurer for approval before authorizing repairs. www.fehmarn24.de · www.kurierverlag.de · www.europeonline-magazine.eu · www.upday.com
- [● 2 SOURCES] In cases involving third-party liability, the workshop risk typically rests with the perpetrator or their liability insurance rather than the policyholder's casco insurance. www.fehmarn24.de · www.upday.com
- [● 4 SOURCES] Casco insurers are not required to cover repair costs that are deemed objectively unnecessary, unperformed, or excessive. www.fehmarn24.de · www.kurierverlag.de · www.europeonline-magazine.eu · www.upday.com